Causes of Unemployment and the Economic Schools of Thought

Unemployment prevalence is normally measured with what is normally termed as unemployment rate which is defined by expressing those out of labour force as a percentage of those who are in the force.
More often than not the unemployment rate has been used in economic studies where it may be applied to measure the state of macroeconomics. This paper seeks to argue out the proposition that unemployment within the labour market is primarily voluntary.
A number of causes for unemployment have been floated and these causes depend on the economic school of thought. The Keynesians and monetarists more often than not disagree on the causes of unemployment and as such, they also disagree on the best policies to address the issue of unemployment. For instance, the monetarists believe that by controlling inflation, economic growth and investments will be enabled and these will consequently lead to reduced unemployment rates. How do Keynesians address the issue of unemployment? The Keynesian believe that the best way of addressing unemployment is to smoothen out the business cycles by the manipulation of the aggregate demand (Hillier, 1991: pp157-159). Economic theories aside, the type of unemployment is purely dependent on the goods market situation. If for instance the sales are strictly tied to demand then the Keynesian type of unemployment results. However, if there is a limited production capacity then the ensuing unemployment is termed as classical unemployment.
The main types of unemployment include but are not limited to Frictional Unemployment, Seasonal Unemployment, Cyclical (Keynesian) unemployment, Structural unemployment and Classical unemployment among others. Frictional unemployment results when one transfers from one job to another. This is the same unemployment type experienced by the fresh graduates who are searching for a job.